Comments on: Federal Budget Wish List http://www.canadiancapitalist.com/federal-budget-wish-list/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: GIV http://www.canadiancapitalist.com/federal-budget-wish-list/#comment-688 GIV Sat, 25 Feb 2006 01:51:49 +0000 http://www.canadiancapitalist.com/?p=359#comment-688 Accountability in government! Thanks for the link, and check out my blog Accountability in government!

Thanks for the link, and check out my blog

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/federal-budget-wish-list/#comment-681 Canadian Capitalist Fri, 24 Feb 2006 04:06:38 +0000 http://www.canadiancapitalist.com/?p=359#comment-681 You are right that wealthy folks are able to borrow money to invest and generate a tax break. But the key point is very few are able to take advantage of this. If everyone is allowed a mortgage deduction, asset prices will inflate to reflect the lower carrying costs. And eliminating the capital gains exemption would be unfair to people who have already paid off their mortgage. You are right that wealthy folks are able to borrow money to invest and generate a tax break. But the key point is very few are able to take advantage of this. If everyone is allowed a mortgage deduction, asset prices will inflate to reflect the lower carrying costs. And eliminating the capital gains exemption would be unfair to people who have already paid off their mortgage.

]]> By: 0xcc http://www.canadiancapitalist.com/federal-budget-wish-list/#comment-678 0xcc Thu, 23 Feb 2006 13:49:19 +0000 http://www.canadiancapitalist.com/?p=359#comment-678 I totally agree with these points. I personally would like to see some sort of combination of a GST cut and income tax cut. Even if it is something like removing the GST on some items that a significant portion of people need (for example, diapers although I'm not sure if GST applies to those) or even increasing the GST credit for lower-income people. The mortgage interest deductibility is a little bit of a funny one. There currently is a wealthy/non-wealthy divide with respect to mortgage interest deductions. If you are well-off enough to have non-registered investments that have a market value that is equal to or higher than your mortgage you can do a 'swap'. Sell off all your investments, pay off your mortgage, take a loan using your house as collateral and then invest the money you get from that loan. Bingo, your mortgage interest is tax-deductible I totally agree with these points.

I personally would like to see some sort of combination of a GST cut and income tax cut. Even if it is something like removing the GST on some items that a significant portion of people need (for example, diapers although I’m not sure if GST applies to those) or even increasing the GST credit for lower-income people.

The mortgage interest deductibility is a little bit of a funny one. There currently is a wealthy/non-wealthy divide with respect to mortgage interest deductions. If you are well-off enough to have non-registered investments that have a market value that is equal to or higher than your mortgage you can do a ‘swap’. Sell off all your investments, pay off your mortgage, take a loan using your house as collateral and then invest the money you get from that loan. Bingo, your mortgage interest is tax-deductible

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